Calculating Residual Income for Company XYZ

Company XYZ has a book value of equity of $1,000,000 at the beginning of the year. The company's required return on equity is 10%, and it expects to generate a net income of $150,000 in the current year. To calculate the residual income, you must first determine the equity charge, which is calculated as the book value of equity multiplied by the required return on equity. What is the residual income for Company XYZ?